The study explores whether the financial risk tolerance capacity and herding behaviour affect the Generation Z investor’s investment decision. A structured questionnaire has been developed, and used with Five-point Likert scaling technique for measuring the constructs in the study. The data was collected through both offline and online mediums from Generation Z individual investors, and the authors have used PLS-SEM technique to examine the data. The study reveals as the herding behaviour influences investors’ investment decisions. Also, it states the association between herding behaviour and financial risk tolerance capacity be positively associated. In contrast, financial risk tolerance capacity is without any mediating value between herding and their investment decisions.